REDEFINING THE ENTERPRISE
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- Norah Blake
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1 REDEFINING THE ENTERPRISE ENABLING IT AND BUSINESS TRANSFORMATION WITH INDUSTRY BENCHMARKS 1
2 TODAY S BUSINESS CHALLENGES REACT FASTER TO FIND NEW GROWTH CUT OPERATIONAL COSTS & LEGACY MORE THAN EVER 2
3 ENTERPRISE IT MONOPOLY IS ERODING WHY? >50% 41% USE OUTSIDE SERVICE PROVIDERS 41% FASTER SERVICE DELIVERY TECHNICAL EXPERTISE Source: IDG /CIO Big Picture Global Survey: Dual Perspective of ITaaS, June
4 IT-AS-A-SERVICE DELIVERS BUSINESS AGILITY AT LOWER COST BUSINESS LEADERS AND IT LEADERS AGREE THAT ITaaS IS IMPORTANT IT COST COMPARISON (% of Total IT OpEx Budget) Legacy 100% INNOVATION SPENDING (% of IT Budget) Cloud Services External Services Internal Services Software Hardware Telecom, Facilities, Legacy ITaaS 76% MAINTENANCE INNOVATION Legacy - 28 % ITaaS 40 % Source: Forrester, EMC analysis Source: McKinsey, Gartner, EMC analysis 4
5 WHAT IT-AS-A-SERVICE DELIVERS BROKERED AS WELL AS BUILT CONSUMERIZED CHOICE OF DEVICE STANDARDIZED SERVICES SELF PROVISIONED TRANSPARENT PRICING AND SERVICE LEVELS AUTOMATED DEPLOYMENT 5
6 EMC S IT-AS-A-SERVICE RESULTS COST ~75% INFRASTRUCTURE CAPACITY UTILIZATION $66M OPEX SAVINGS $157M CAPEX SAVINGS (AVOIDANCE) AGILITY 42% OF IT SPEND ON NEW CAPABILITIES ~1 DAY TO PROVISION APPLICATION ENVIRONMENTS Source: ESG IT Audit Report: EMC IT - Leading The Transformation, March
7 TYPICAL STARTING POINTS TO DELIVER IT-AS-A-SERVICE Align Workloads to Optimal Cloud Model 2 ND PLATFORM EXISTING APPS APPLICATION TRANSFORMATION END USER EXPERIENCE 3 RD PLATFORM NEW APPS APPLICATION FABRIC DATA FABRIC CLOUD FABRIC OPERATING MODEL TRANSFORMATION USER PORTAL SERVICE CATALOG NEW ROLES Develop User Portal & Catalog of Business Services INFRASTRUCTURE TRANSFORMATION POLICY ENGINE Transition to Agile, Scalable Infrastructure HYBRID ORCHESTRATION ENGINE AGILE PROCESSES Establish Automation Pilot PUBLIC PRIVATE LEGACY METERING ENGINE Not sure? EMC IT Transformation Workshop can establish baselines and identify priorities 7
8 INDUSTRY BENCHMARKS FOR BETTER BUSINESS INSIGHT Provides insight into Retail s areas of analysis for transformation in: Service Strategy Infrastructure Operating Model Applications Establishes an approximation for measuring success toward your goals and continuing improvement 8
9 OVERALL BENCHMARK SCORES OVERALL IT TRANSFORMATION INDUSTRY SCORE SCORES FOR TRANSFORMATION ELEMENTS Retail Target Maturity Levels OPTIMIZING MANAGED DEFINED REPEATABLE AD-HOC INFRASTRUCTURE COMPOSITE OPERATION MODEL TRANSFORMATION COMPOSITE APPLICATION MODERNIZATION COMPOSITE SERVICE STRATEGY COMPOSITE 9
10 SERVICE STRATEGY METRICS INDUSTRY SERVICE STRATEGY COMPOSITE Everything as a Service IT-as-a-Service Broker Retail Target Maturity Levels AREAS OF SERVICE STRATEGY ANALYSIS Cloud Service Brokerage IT Organizational Preparedness Self-Service Portal/Service Catalog Financial Management Levels of Executive Support 10
11 INFRASTRUCTURE METRICS OPERATION MODEL TRANSFORMATION INDUSTRY COMPOSITE Retail Target Maturity Levels AREAS OF INFRASTRUCTURE ANALYSIS Server Percent Virtualized Tier 1 Apps Virtualized High Availability of VM Systems Storage Virtualization Network Percent Virtualized Business Continuity of VM Systems Converged Infrastructure Server Percent Virtualized 11
12 OPERATING MODEL METRICS INFRASTRUCTURE INDUSTRY COMPOSITE Retail Target Maturity Levels AREAS OF OPERATING MODEL ANALYSIS Resource Provisioning VM to Admin Support Ratio Configuration Management Performance Service Predictability IT Skills Capacity Management Metering for Service Consumption Operations Analytics 12
13 APPLICATION METRICS APPLICATION INDUSTRY COMPOSITE Retail Target Maturity Levels AREAS OF APPLICATION ANALYSIS Application Percent Virtualized Tier 1 Apps Cloud Ready Application Availability Requirements Access from Anywhere App Cloud Platform Percent Cloud Ready Rapid Application Development Desktops Virtualized Desktop/EUC Resources 13
14 APPENDIX ADDITIONAL INFORMATION ON THE IT TRANSFORMATION FOCUS AREAS 14
15 OPERATING MODEL TRANSFORMATION TRADITIONAL BUSINESS VIEW CLOUD BUSINESS MODEL SELF-SERVICE PORTAL LENGTHY PROCESS MANY APPROVALS FOR SERVICE REQUESTS PUBLIC CLOUD SERVICE CATALOG PRIVATE CLOUD COST ACCOUNTING BY PROJECT FINANCIAL TRANSPARENCY BY SERVICE LEVELS 15
16 OPERATING MODEL TRANSFORMATION TRADITIONAL OPERATIONS Labor-Intensive Multiple Management Tools Separate Teams AGILE CLOUD OPERATIONS INTEGRATED OPERATIONS PORTAL SERVER TOOLS STORAGE TOOLS NETWORK TOOLS RATIONALIZED PROCESSES Release Problem Change Incident OPERATIONAL PROCESSES Configuration Capacity Incident Problem Release Capacity Change Incident SERVER TEAM STORAGE TEAM NETWORK TEAM Incident Problem Configuration Availability Service Level Demand Change Release Capacity CLOUD OPERATIONS TEAM DISCONNECTED PROCESSES AUTOMATED OPERATIONS 16
17 INFRASTRUCTURE TRANSFORMATION TRADITIONAL ENVIRONMENTS STANDARDIZED INFRASTRUCTURE VIRTUALIZED CONVERGED SOFTWARE DEFINED IT as System Integrator Silos Optimized for Individual Applications Weeks/Months to Deploy Efficient, Enterprise Resource Pool Flexible, Scalable Private Cloud Minutes/Hours to Deploy 17
18 APPLICATION TRANSFORMATION TRADITIONAL APPLICATIONS APPLICATIONS AS A SERVICE INTEGRATED MANAGEMENT ERP INSTANCES MESSAGING INSTANCES CRM INSTANCES MAINFRAME PRIVATE PUBLIC DATABASE INSTANCES USER ENVIRONMENTS DESKTOP LAPTOP Batch Scientific/ Engineering OLTP Networking ERP Data warehouse/ Data Mart CRM Data Analysis/ Data Mining File & Print Workgroup Web Serving App Development Multiple Instances, Different Versions Customized: 100s of Integrations Tailored Operational Processes Optimized, Rightsourced Standardized: Fewer Integration Points Operationally Efficient 18
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