Measure Twice, Cut Once: 5 Best Practices For Selecting Your Cloud Service Providers

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Five Steps to Managing Your Cloud
Service Providers for Effective
Application Delivery

Dennis Drogseth
Vice President
Enterprise Management Associates

September 8, 2011
© 2011 Enterprise Management Associates, Inc.

Agenda

• Where and why cloud adoptions are changing
• Step One: Assess your application/infrastructure design
requirements
• Step Two: Map your application/infrastructure design requirements
to cloud/ hybrid options
• Step Three: Assess your monitoring requirements
• Step Four: Select cloud service providers based on design needs,
reputation and willingness to partner
• Step Five: Manage your cloud SPs as participants in a broader
application/service ecosystem.
• Conclusion

Slide 4 © 2011 Enterprise Management Associates, Inc.

70% of Respondents have had to RETHINK or
REDIRECT Initial Deployments

Do you believe, or did you discover, that once begun, Cloud initiatives
required rethinking and/or redirection before the...

Yes 70%

No 21%

Don’t know 8%

0% 10%
Sample Size = 155 Column %


Of These, Process, Technology Adoption, and
Application Development Dominate
Which changes has your org made/anticipate to rethink and/or
redirect the original cloud initiative?

Changes in process and process flows 47%

Changes in management technology adoption
41%
for provisioning services managing…
Changes in application development and
40%
design
Changes in management technology adoption
39%
for service performance management
Changes in how services are accounted for
36%
from a cost perspective
Changes in how cloud and/or virtualization
36%
deployments are initiated
Changes in how cloud and/or virtualization
33%
initiatives are measured for effectiveness

Changes in organizational ownership 26%

Other (Please specify) 1%

0% 10% 20% 30% 40% 50%
% Valid Cases (Mentions / Valid Cases)
Sample Size = 138

Step One: Assess your Application/
Infrastructure Design Requirements


Application/Infrastructure Design Requirements
Cut Across Domains

• Database(s)
• Storage
• Application Server (s)
• Middleware Server(s)
• Mainframe
• Web 2.0 and other services – e.g. credit card
validation
• Network interdependencies – local and WAN
• Devices – application acceleration, load
balancing , etc.
• DNS, Active Directory, and other services
Note: SaaS can be private as well as public. And
even public SaaS options, along with public IaaS and
PaaS options, need to be understood in terms of
overall application ecosystem design.

And Can Include Many Different Types of
Component Interdependencies
Which of the following environments pertain to your company’s Web-based
business applications? Select all that apply.
Java 77%
.NET 61%
Virtual Server environments (VMWare, Xen, etc.) 61%
VPN 59%
Wireless 56%
Virtual Application environments (Citrix, etc.) 50%
Mobile 50%
Virtual Desktop Infrastructure 40%
Cloud Services 37%
SaaS 37%
Thin client 34%
Cellular 33%
AJAX 31%
Content Delivery Networks 29%
MPLS 22%
Ruby on Rails 16%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Sample Size = 119, Valid Cases = 119

Who YOU are Matters

• Manufacturing: more focused on industry-specific apps and less
focused on CRM/ERP than average, supports a wide range of
technical environments – e.g. SaaS, virtualization CDNs.
• Retail: more likely to track Web abandonment rates and is asked to
share information with suppliers Tracks competitors’ performance
more than average.
• High Tech/Computer: favors Corporate Web sites and SOA,
Tracks competitors’ performance, and more focused on sharing
information with external customers, and favors social networking.
• Healthcare: strong on industry-specific applications and back office
(ERP CRM), favors SaaS, is asked to share information with
external customers, suppliers and partners more than average.
• Finance: more likely to view Web applications as critical, naturally
focuses most on financial transactions, is least likely to go for Cloud
and social networking.

Step Two: Map your
Application/Infrastructure Design
Requirements to Cloud/Hybrid
Options


IaaS and PaaS show more Organizational and
Maturity Dependencies than SaaS

What cloud computing service model(s) has your organization deployed, or is
planning to deploy? Select all that apply. by...

Software as a Service (SaaS) – a fully-functional 76.56%
pre-built application environment is delivered by
the (internal/external) cloud provider 76.92%

Title
Platform as a Service (PaaS) – an environment for 31.25%
application development and deployment is
delivered by the (internal/external) cloud provider 43.96%

Infrastructure as a Service (IaaS) – only basic 29.69%
system or machine-level resources are delivered
by the (internal/external) cloud provider 45.05%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Sample Size = 155, Valid Cases = 155 Without X-Domain With X-Domain


Map your Application/Infrastructure Design to
Cloud and Hybrid Options

• Internal Cloud versus External Cloud
versus Virtualized Infrastructure only
versus Physical Infrastructure
• SaaS, IaaS, Paas
• Plan A
• Plan B
• Virtualized = ???
• Look before you leap


Cloud is also Impacting
Application Design Criteria

Indicate the top 2 technologies for building cloud services not
including systems virtualization

Virtual Desktop Infrastructure 56%

Web Services 49%

Web 2.0 technologies 41%

New application APIs 35%

Configuration libraries 19%

0% 10% 20% 30% 40% 50% 60%

Sample Size = 155 % Valid Cases (Mentions / Valid Cases)


Step Three: Assess your Monitoring
Requirements


Some Overall Monitoring Objectives

• Pre-deployment and Dev/Ops
• Scalability
• Geographical variance and mobility
• SLM/ SLAs
• User Experience Management
• Business impact
• Multi-dimensional Transaction
awareness
• External ratings and rankings
• And Understand WHO’s Doing the
Monitoring


Web-based and other Application Monitoring
Requirements Don’t Go Away
Which of the following is your company actively monitoring in support of Web-based
applications performance? Select all.
Load balancing/ traffic management 71%

Web analytics (tracking how people use your Web site) 67%

Performance of Web applications used internally 66%

Financial transactions 57%

Data on your competitors’ performance 45%

Suppliers (for manufacturing; healthcare; retail, etc.) 44%
Integrations with third-party Web sites (e.g. travel reservation
42%
systems)
SaaS (e-commerce packages integrated into your Web site, such
41%
as SalesForce.com,)
Cloud infrastructure performance 39%

Geographically specific content 35%

Ad-serving 24%

Mashups 23%

CDN performance 22%


0% 20% 40% 60% 80%

Service Management Dashboards with Advanced
Analytics Deliver Especially Strong Value

• Dashboard plus analytics best in ALL areas but especially:
• 1.8 times more likely to reduce management complexity
• 1.4 times more likely to reduce capital costs via cloud
• 1.7 times more likely to free up resources for strategic projects
• 1.9 times more likely to improve service resilience via cloud
• 1.4 times more likely to accelerate deployment of existing services
via cloud
• 1.4 times more likely to increase infrastructure flexibility and agility
via cloud
• 1.8 times more likely to expand revenue channels via cloud
• Twice as likely to deliver business model enhancements
via cloud


IT Organizations Without SLM are more than 1.6
times more likely to show flat/declining Budgets

What was the percentage increase or decrease of your organization’s annual IT
budget from last year to this year? Grouped by Service level management

With Service level Management Without Service level Management

29.73%
Title

48.53%
51.47%

70.27%

Sample Size = 142
Increased Flat/Decreased Increased Flat/Decreased


Step Four: Select Cloud SPs Based on
Design Needs, Reputation and
Willingness to Partner


Selecting for Design, Reputation and
Willingness to Partner

• Who are they?
• What do they offer?
• What SLAs do they offer
• What are their security guarantees?
• What is your effective access to them when things go wrong?
• Are they (at all) willing to partner with you or do they manage their
clients as commodities?


Security, Overall Performance, and SLA
Commitments Lead Cloud SP Selection Criteria

What are your top decision factors when choosing a cloud computing
service provider (external cloud)?

Security, risk, or compliance strengths 63%

Proven performance 55%

Willingness to commit to SLAs 43%

Low cost 43%

Willingness to support your need to monitor 28%

Diversity of services 28%

Willingness to provide data-level access 21%

Willing to work with other cloud service providers 20%


0% 10% 20% 30% 40% 50% 60% 70%
Sample Size = 155 % Valid Cases (Mentions / Valid Cases)


Check All that Apply!

• Which are you using Cloud Service Providers for? (check all that
apply)
• Mission critical customer-facing applications
• Production ERP applications
• Partner/ supply chain, or other community application environments
• Back office niche applications
• User productivity applications
• Messaging and collaboration applications
• Off-site Web hosting
• Platforms for application test and development
• Remote database
• Remote storage
• Full remote infrastructure support
• Trying out new apps to see if they’re useful


Step Five: Manage your Cloud SPs as
Participants in a Broader
Application/Service Ecosystem


Web-based Application Ecosystems are
Increasingly on the Rise

How would you describe the role of Web-based applications for your
business/organization?

They are an essential
part of our business or 51%
services

They are an important
part of our business or 49%
services

0% 10% 20% 30% 40% 50% 60%

Column %
Sample Size = 119

Information Sharing Across Web-based Application
Ecosystems Provides Relevant Insights into Cloud
Which of the following groups are actively asking you to share Web-based
applications performance information? Select all.

Internal between IT and
66%
the lines of business

Internal relevant IT
62%
groups

Internal on-line
43%
operations

External partners 39%

External customers 38%

External suppliers 35%

0% 10% 20% 30% 40% 50% 60% 70%


Ecosystem Monitoring and Control Concerns
Reflect Overall Cloud Concerns

What are the obstacles that you foresee in monitoring cloud-related services?
Select all that apply.

Security vulnerabilities 65%

Lack of visibility 49%

Overall lack of control 47%

Lack of unified SLAs 47%

Lack of accountability 44%
Managing the service provider politics
40%
beyond the technologies
Unique API requirements 35%

Support for virtualized environments 33%


0% 20% 40% 60%


How to Manage Your Cloud Providers as a Part of
an Extended Application Ecosystem

• Cloud contracts can have shorter durations- - this is Cloud
“Shopping Mall” and let them know it
• Use Cloud to try out new services – who’s and what’s right for you?
• Have multiple options – who’s performing best today?
• Revisit the term “stakeholders” – if you feel their stakeholder is their
lawyer, maybe not the right choice.
• Formalize process expectations in the contract—they will if you
don’t – be proactive .
• In parallel, publish what you’ve got– define your services to YOUR
customers, so you can manage their expectations.
• Seek out and external resources for validating poor performance
and document your concerns
• Manage them as RESOURCES for YOUR application services


Thank you for attending.


W ^ ^ W

Insure all stakeholders
have a seat at the table,
including Dev Test

Choose cloud model(s)
based on both technical
business requirements

Implement a cloud
performance monitoring
strategy from Day 1

Evaluate CSPs based on
your IT design goals and
business needs

Insure performance goals
by continuously monitoring
the end user experience

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Additional Resources Available To Download
SUMMARY OF EMA “OPERATIONALIZING COMPUWARE PAPER “THE WORLD IS NOT FLAT: HOW
CLOUD” REPORT APPLICATION LOCATION INFLUENCES USER EXPERIENCE

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Measure Twice, Cut Once: 5 Best Practices For Selecting Your Cloud Service Providers

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