2. 2
What do I plan to discuss today
GOAL: Provide an overview of Cloud computing and it’s strategic relevance to
Service Management
Agenda
• Cloud computing basics
• Cloud Industry dynamics
• Approach to the market
• Service Management support for Cloud Offerings
• Strategic Implications for ITIL Service Management
• Where to find more info
• Next steps
3. 3
CIOs objectives for IT Service Management
• Reduce number of service management system instances core focus on simplification,
standardization & automation
• Migrate Service Management tools & instances to Cloud platform, reduce cost and
capital intensity
• Converge service delivery processes, tools and resources
• Improve ITSM systems integration and service delivery data quality
• Improve Agile development and DevOps release management processes
• Provide trust worthy operations facts, metrics and SLA / OLA compliance
• Align functional end-to-end ownership of ITIL processes and tools
• Improve client onboarding and off boarding speed and experience
• Provide transparency for usage based Billing, Invoicing and Chargeback mechanism
4. 4
Cloud computing basics
NIST Definition:
Cloud computing is a model for enabling ubiquitous, convenient, on-demand network
access to a shared pool of configurable computing resources (e.g., networks, servers,
storage, applications, and services) that can be rapidly provisioned and released with
minimal management effort or service provider interaction. This cloud model is
composed of five essential characteristics, three service models, and four deployment
models.
Ref: NIST Cloud Computing Definition SP 800-145 http://csrc.nist.gov/publications/nistpubs/800-145/SP800-145.pdf
5 Essential Characteristics
• On-demand self-service
• Resource pooling
• Rapid elasticity
• Measured service
• Broad network access
3 Service Delivery Models
• Software as a Service (SaaS)
• Platform as a Service (PaaS)
• Infrastructure as a Service (IaaS)
4 Deployment Models
• Public Cloud
• Private Cloud
• Community Cloud
• Hybrid Cloud
6. 6
Enterprise Architecture and Cloud Architecture
Business
Architecture
Information
Architecture
Application
Architecture
Technology &
Infrastructure
Architecture
Service Delivery
What, Who, Why
• Mission
• Vision
• Stakeholders
• Operating
Model &
Processes
• Value Chain
Models
• Metrics &
Measures
• Align Business
Strategy to IT
Strategy
What, How
• Data Models
• Data Flows
• Interface,
Integration &
Interoperability
• Relevance to
Business
functions
With what
• Applications
• Tools
• Functions
• Capabilities
• Workflows
With what
• Servers
• Software
• Network
• Storage
• GRC, Legal,
Security &
Privacy
• Date Centers
Sites
How & How much
• Deployment
• Chargeback
• Break fix
• SLAs/SLOs
• Operations &
Management
Enterprise Architecture focus
Cloud Architecture focus
7. 7
Promise of Cloud Computing
Cloud will not necessarily help map IT to business but…
Cloud can enable:
• Economies of scale & Improved resources utilization
• Reduce capital spending on technology infrastructure
• Lower barriers to entry for small businesses & lower start-up costs
• Usage based billing (pay as you go)
• Globalization of workforce
• Faster Deployment, Onboarding, Provisioning & De-provisioning
• Improve accessibility anytime & anywhere
• Improve transparency for Integration & flexibility
• Implement Chargebacks
• Improve Operations support & Provide SLAs / SLOs
• Deliver projects more predictability
• Minimize software licensing costs
Challenges & success factors…
• Legacy migration
• Integration & Interoperability
• Data & Applications Architecture
• Technology compatibility Issues
• Security & Privacy risks
• Legal & Regulatory Compliance
• Management of Change
8. 8
Cloud Models & Approaches
Ref: OpenNebula.org http://opennebula.org/eucalyptus-cloudstack-openstack-and-opennebula-a-tale-of-two-cloud-models/
Datacenter Virtualization:
Cloud as an extension of
virtualization in the datacenter; hence
looking for a vCloud-like
infrastructure automation tool to
orchestrate and simplify the
management of the virtualized
resources.
Infrastructure Provision:
Cloud as an AWS-like cloud on-
premise; hence looking for a
provisioning tool to supply virtualized
resources on-demand.
9. 9
Factors for choosing Cloud Models & Approaches
Datacenter Virtualization Infrastructure Provision
Applications
Multi-tiered applications defined in a
traditional, “enterprise” way
“Re-architected” applications to fit into the
cloud paradigm
Interfaces Feature-rich API and administration portal Simple cloud APIs and self-service portal
Management
Capabilities
Complete life-cycle management of virtual
and physical resources
Simplified life-cycle management of virtual
resources with abstraction of underlying
infrastructure
Cloud Deployment Mostly private Mostly public
Internal Design
Bottom-up design dictated by the
management of datacenter complexity
Top-down design dictated by the efficient
implementation of cloud interfaces
Enterprise Capabilities
High availability, fault tolerance, replication,
scheduling… provided by the cloud
management platform
Most of them built into the application, as in
“design for failure”
Datacenter Integration
Easy to adapt to fit into any existing
infrastructure environment to leverage IT
investments
Built on new, homogeneous commodity
infrastructure
15. 15
HP’s 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
Private PublicTraditional Managed
Hybrid Delivery
Cloud OS OpenStack
Architecture
Interoperable Services, Unified
Management via OpenStack
Build
on-premises
cloud services
Consume
off-premises
cloud services
16. 16
Enterprise Cloud Services offers an ecosystem for Cloud Services
Leverage HP’s broad managed Cloud portfolio
HP
Enterprise Cloud Services
Solutions
Private Cloud Virtual Private Cloud ContinuityIaaS
Messaging Collaboration
Unified
Communications
MobilityEnd User/ Workplace
Cloud
Microsoft Dynamic CRM SAP Applications
OracleApplications
AppsTransformation
Infrastr.Transformation
AppsDev.forCloud
17. 17
Orchestrate
HP Helion VPC PC business model and differentiation
Offering
differentiation
Virtual Private Cloud (VPC) Private Cloud
Infrastructure
• HP owned
• HP defined
• Client owned
• Offering defined HP products
Delivery Global delivery Global standards, regional delivery
Client business model
• Asset-free for client
• Pay for use of cloud
resources and services
• Client-owned assets
• Hardware and software plus
services consumption
HP revenue business
model
• Bundled hardware,
software, and services
• EG and HPSW—pull
through revenue from ES
hardware and software
build
• EG hardware, software, and
implementation services
• HPSW software and professional
services for planning,
implementation, and evolution
• CMS installation—AP4SaaS
• ES infrastructure and cloud
management services
Geographies and
locations
Specific HP data center
locations defined by HP
Client or HP location
Portal and catalog
strategy
• ECS-VPC portal
• Service catalog defined by
HP
• CSA is now base portal, AP4SaaS is
optional uplift
• Service catalog defined by HP
Public
Clouds
Self-service user
BrokerSecure
Private
Clouds
Virtual Private &
Community Clouds
VIRTUAL
PRIVATE CLOUD
PRIVATE
CLOUD
BridgeBridge
Services catalog
Infrastructure, applications,
platform, industry
18. 18
HP’s portfolio & competitive differentiators
Innovations ex: Moonshot & “The Machine”
• six times more powerful than existing servers and require 80
times less energy
• capable of managing 160 petabytes in 250 nanoseconds
Catalog & Order
Management
Hardware,
Software &
Services
Resellers &
Partners
(Demand & Supply
Chain)
Onboarding
Value-add
Services
(ex: Assets, Security)
Metering,
Analytics, Billing,
Cross-charge
Service Delivery
Integrated Value Chain Model
22. 22
HP Helion SRA Integration STRATEGIC IMPLICATIONS
HP Helion Virtual Private Cloud (VPC) SRA Integration provides leverage-able artifacts
• Strategy, Solution Design & Architecture
• Other key Deliverables examples
• Use Cases
• BRD
• RACI
• Onboarding steps & flows
• Integration APIs
• Data Architecture
• Training
• Testing Strategy & Plan
• Integrated Support Processes
Virtual Private Cloud
Private Cloud
Messaging
Collaboration
Real-time Collaboration
Continuity
Unified Communication
HP Helion Services SRA ITIL Services
Leverage the integration
Enterprise Security Services
(ESS)
Mobility
Legend:
Integration & Automation in Production:
Partial use of Integration & Automation:
23. 23
HP Helion Cloud Services Onboarding Value Chain
Deal Assurance
Planning &
Design
Setup Core
Compartment
Setup Core
Network
SRA
Onboarding
HMCO Admin
setup & Handover
to Provisioning
HMCO
Operations
Accountteams,ClientServices,
GlobalEngineering(GETC),GSM/ESM&ESIT
New Deal
SharePoint
Deal Pricing
Capacity Review
Network Review
Non Standard
Request (NSR)
Reviews: VPC, ISR,
Contract
Service Initiation
Form (SIF)
Setup Customer
Profile
Assign Data
Center
Setup Customer
Contract
Configure DNS
Resolution
Setup Customer
Entitlements
Setup Purchase
Order
Setup Customer
Users, Location,…
Note: There may be additional onboarding steps
Setup Home VLAN
DNS Zone
Maintenance
Global Firewall
Policy
Customer
Connectivity VPC
MDM Tenant Code
Customer
Placement
SM Integration &
Setup
ESL Integration &
Setup
ECSO Customer &
Contact Listing
Authorized Caller
List
Customer
Distribution PDL
Setup RtOP / EON
ECS Portal
Training
Service Manager
Training
Handover to HMCO
Provisioning
Setup Order
Approval Mgmt
Handover to
Customer/Account
Compute Server
Orders
Additional Setup
VLANS, Firewall
Handover to HMCO
24. 24
Acronyms
• ECS: Enterprise Cloud Services => HP Helion
• VPC: Virtual Private Cloud
• PC: Private Cloud
• ESS: Enterprise Security Services
• HPSA: HP Server Automation
• OO: Operations Orchestration
• CSA: Cloud Service Automation
• NIST: National Institute of Standards and Technology
• NIST CC SRA: Cloud Computing Standard Reference Architecture
• CSA: Cloud Security Alliance
• GRC: Global Regulatory Compliance
• SLA: Service Level Agreement
• SLO: Service Level Objectives
• Ap4SaaS: Aggregation Platform for Software as Service
25. 25
Where to find more info...
• URL: HP Helion Portfolio
• URL: HP Cloud Community
• URL: ECS VPC SRA Integration Project Share Point
HP Enterprise Services ESM Roadmap and Release Plan / Shared Documents / Projects / Enterprise Cloud Services Integration
• NIST CC SRA URL: http://www.nist.gov/itl/cloud/upload/NIST_SP-500-291_Version-2_2013_June18_FINAL.pdf
• TCI CSA URL: https://cloudsecurityalliance.org/wp-content/uploads/2011/10/TCI-Reference-Architecture-v1.1.pdf
• OpenStack wiki URL: https://wiki.openstack.org/wiki/Main_Page
• OpenStack Main Page URL: http://www.openstack.org/
• OpenStack Developers Guides URL: http://developer.openstack.org/
• HP Cloud Stories URL: http://hp-cloudstories.com/
• …
• …
30. 30
Workloads shifting to the Cloud
Traditional IT
• Server capacity on demand
• Business apps (CRM, ERP)
• IT management
• Email
• Personal productivity apps
• Website creation & management
• Storage capacity on demand
• App dev. & test
• Tech. computing apps
• Data analysis and mining
• Custom apps
• Apps with sensitive data
Private cloud Public cloud
• IT help desk
• Collaborative apps
• Data backup/archive svcs
Cloud computing complements traditional IT
31. 31
Private vs. Public: Understanding the Trade-Offs
Enterprise 1 Enterprise 2
Private Cloud
Private Cloud
• Designated enterprise data
center (or segment)
managed centrally
• Data center resources shared
by all divisions, protected by
enterprise central controls
• Divisions of enterprise act as
independent tenants
• Some elasticity of resources;
good resource utilization;
reduced cost of business
No Cloud
Enterprise IT
• Each enterprise division
manages its own data center
(or a subdivision)
• Exclusive local control of
resources
• Internally borne costs and
burdens of management
• High-cost overcapacity, low
resource utilization
Virtual Private
Cloud
Virtual Private Cloud
• Third-party data center providers
(public cloud characteristic)
• Data center sharing is restricted
to only the divisions of this
enterprise (private cloud
characteristic)
• Divisions of enterprise act as
independent tenants (private
cloud characteristic)
• Some elasticity; good resource
utilization; low cost of business
Community
Cloud
Community Cloud
• Consortium or a government
scope data center (larger than
private, but smaller than public)
• Members of the consortium or
government agencies act as
independent tenants
• Data center resources are shared
by all members; consortium
provides security, privacy and
capacity
• Good elasticity of resources; high
resource utilization; reduced cost
of business
Public Cloud
• Third-party data center
providers
• Computing resources shared
by independent enterprises
(tenants), protected by third
parties in cloud
• Maximum elasticity;
maximum resource
utilization; low cost of
business
Public Cloud
32. 32
Private vs. Public: Understanding the Trade-Offs
Enterprise 1 Enterprise 2
Private Cloud
Private Cloud
• Designated enterprise data
center (or segment)
managed centrally
• Data center resources shared
by all divisions, protected by
enterprise central controls
• Divisions of enterprise act as
independent tenants
• Some elasticity of resources;
good resource utilization;
reduced cost of business
No Cloud
Enterprise IT
• Each enterprise division
manages its own data center
(or a subdivision)
• Exclusive local control of
resources
• Internally borne costs and
burdens of management
• High-cost overcapacity, low
resource utilization
Virtual Private
Cloud
Virtual Private Cloud
• Third-party data center providers
(public cloud characteristic)
• Data center sharing is restricted
to only the divisions of this
enterprise (private cloud
characteristic)
• Divisions of enterprise act as
independent tenants (private
cloud characteristic)
• Some elasticity; good resource
utilization; low cost of business
Community
Cloud
Community Cloud
• Consortium or a government
scope data center (larger than
private, but smaller than public)
• Members of the consortium or
government agencies act as
independent tenants
• Data center resources are shared
by all members; consortium
provides security, privacy and
capacity
• Good elasticity of resources; high
resource utilization; reduced cost
of business
Public Cloud
• Third-party data center
providers
• Computing resources shared
by independent enterprises
(tenants), protected by third
parties in cloud
• Maximum elasticity;
maximum resource
utilization; low cost of
business
Public Cloud
Autonomy
Cost-Efficiency
33. 33
ECS- Virtual Private Cloud
Public CloudTraditional Outsourcing Virtual Private Cloud
(ECS-VPC)
LOW Delivery Standardization HIGH
MONTHS Time to Provision MINUTES
Minimum SLA
Guarantees
Strong SLA
Guarantees
Strong
SLA Guarantees
Variable – Short TermContract Length
Multi-year Fixed
Contract Length
One Month to Multi-year
High Security
Levels
High Security Levels Public Internet
Level Security
Single Tenancy Multi-Tenancy with secure
network compartments
Multi-Tenancy
33
Fixed Multi-Year
Pricing
Monthly and Per-User Pricing
Reservation & Usage Based
Instance, Bandwidth etc.
Usage Pricing
0% Elasticity 100%
Best of both worlds
34. 34
Cloud delivery requires application decisions
What applications
should I move to
the cloud?
How do I make
applications ready
for the cloud?
How do I secure
applications in
the cloud?
How do I integrate
my business
processes?
How do I integrate
applications in the
cloud with my
other apps?
How do I develop
and test apps in
the cloud?
How do I manage
applications in
the cloud?
CIO
35. 35
Critical factors to align for new cloud services
Business Strategy, Vision, Goals
End-user view-points, &
adoption
IT Operations Model
Technology, Transformation, Integration,
Migration, Management of Change
ITSM Service Delivery
Model
Organization, Accountability &
Governance, Business Processes,
Value Chain Models, Metrics &
Measures Cloud Services
36. 36
Disrupting innovation is accelerating
Mainframe Client/server Internet Mobile, social,
big data, cloud
98,000+ tweets
698,445 Google searches
168 million+ emails sent
And every 60 seconds:
217 new mobile web users
• 2/3 of IT decision makers spending less
on traditional services as a result of
moving to the cloud
• Average cost of a security breach
$8.6M USD
• Volume of data by 2020: 35 Zettabytes
37. 37
Deciding where workloads belong
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
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
• 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
Geoffrey Moore – Dealing with Darwin – 2006 & Interviewing Geoffrey Moore: Core versus Context - 2011
