VMworld 2013 Ed Hoppitt, VMware Phil Richards, British Telecom Plc Learn more about VMworld and register at http://www.vmworld.com/index.jspa?src=socmed-vmworld-slideshare

1. Operations Transformation –
Expanding the Value of Cloud Computing
Ed Hoppitt, VMware
Phil Richards, British Telecom Plc
OPT4689
#OPT4689

2. 2
Presenters
Ed Hoppitt - VMware
Business Solution Architect
Email: ehoppitt@vmware.com
Blog: www.gatheringclouds.co.uk
Twitter - @edhoppitt
Phil Richards – BT Global Services
Customer CTO
Email: phil.2.richards@bt.com
Twitter - @philmrichards

3. 3
Agenda
 Cloud Ops Introduction
 Overview of the Challenges of Cloud Operations
 Customer Example – BT Global Services
 BT’s end-customer experience as an IT outsourcer
 VMware Customer Examples of today and tomorrow
 Business value of making the changes
 Moving your business forward

4. 4
This Is Not a Technology Discussion

5. 5
Operations Transformation in the Cloud Era
IT Ops in cloud era – is different than IT Operations in Client/Server era

6. 6
Organizations Now Expect IT to Change at Pace of Business…
New Economics of IT = GROWTH…
… IT Must Become Value Creators
 New opportunities, new market, new business models
 Increase/Retain customers, market share, opening new markets
Enabling
CEOs
 Must maintain cost pressure and help drive additional revenueCIOs
 Drive revenue growth and differentiation
 Increase competitiveness
Uniqueness
 Lower the cost of failure, reduce the price of successAgile
Infrastructure

7. 7
A Cloud Ops Example – Provisioning Automation
Q What Percentage of your environments are provisioned in the
following ways ?
26%
19% 18% 18%
11%
9%
Total
Manual Custom
Manual Routing
Partly Automated
Mostly Automated
One Click
Don't Know
 Provisioning Automation Environment
19% 19%
27%
15%
10%
4%
6%
Total
Mainframe
x86 Physical Server
Virtualized x86 server
Private Cloud
Public Cloud
SaaS
Don't Know
16%
54%
28%
Total
Highly Dynamic
Moderately
Dynamic
Mostly Static
 Workload Stability
Source - VMware 2013 CloudOps Transformation Benchmark

8. 8
About British Telecommunications (BT) Plc
• Global Networking and IT Company headquartered in London
• Annual Turnover of $25 billion, Market cap of $24 billion
• Global customer base of 8,500 customers in 170 countries
• 2008 – BT Launches Automated Private Cloud
• 2011 – BT Launches ‘BT Cloud’ Amazon type cloud
• 2012 – BT Deploys VMware vCloud Suite for Enterprise IT
• > 30,000 servers under management
 London 2012 Official Communications Partner
• 55,000 page views per second
• 6Gb/second sustained on games-network
• 4,000 routers, 80,000 voice and data outlets
• 500,000 WiFi Hotspots

9. 9
What Is Driving Our Customers to Make this Change ?
51%
56%
42%
36%
45%
42%
39%
40%
35%
28%
37%
30%
41%
43%
34%
37%
39%
37%
36%
35%
"Cloud native" applications
Automation
Horizontal scaling
Hybrid environments
Vertical resource scaling
Service orientation
On-demand provisioning
Self service
Policy driven
Service broker
Substantial Impact Some Impact
Source - VMware 2013 CloudOps Transformation Benchmark

10. 10
Our Customers’ Challenge with the status quo
 Fear
• Innovate today whilst keeping yesterday’s lights on
• Operating model not keeping pace with customer demands
• Unable to keep pace with competitors
 Uncertainty
• How do we transform
• Where do we start – ‘we wouldn’t want to start from here’
• How do we justify/quantify the business value of options
 Doubt
• How does this all fit in to our world
• Is this just all hype – is there really a risk of doing nothing (safe !)
• Who should we turn to for leadership and guidance

11. 11
Deploying SDDC Internally – The MI Programme
 Launch of services like BT Sport ($2 billion
investment in sports media coverage)
 Driving a new way of thinking, and a new level
of agility
 Current solutions were process-bound
 Silos risked being barriers to speed
 Too focussed around infrastructure
 vCloud Suite deployed onto vBlock
 Transformation of operational processes
 Organisation transformation where design and
operations functions merge (TSO)

12. 12
The Challenges with the Past
 Development cycle times were too long and complex
 Traditional markets placed less stress on IT vs today
 Traditional IT models aren’t designed with agile in mind
 Too silo focused, built around the infrastructure not tenants
 Lack of clear end to end ownership
 Desire to standardise everything

13. 13
BT’s Customers are Feeling this Challenge
Platform managing Air Cargo Logistics through UK airports
 What:
• Ageing infrastructure, applications and support model
• End of life risk for service support and infrastructure
• Disproportionate FTE requirement vs market value of service
• Silo environment not leveraging economies of scale
• Need to provide an operational model that meets the customers needs
 How:
• VMware Advisory Services lead engagement including PSO to drive both
Cloud Ops and Platform Architecture change

14. 14
BT’s Customers are Feeling this Challenge
Public Sector Organisation
 What:
• Years of managing and collecting infrastructure (keeping lights on)
• A true museum of IT decisions past
• Data centre estate has grown organically
• Flow of information and data is restricted and slow
• Wants to move to private and public cloud…..but how?
• Security standards high internally – authentication of data
 How
• Creating a strategy around the Software-Defined Datacentre. Building an ROI
model around that transformation that allows the value of technical and
operations management transformation to be quantified and then realised.

15. 15
VMware Advisory Services Customer Example
 Great investment in VMware
 One IT Organisation – Done ?
 Reality still silos for teams
 Tactical tooling, no dashboard
 Automation means scripts
 All staff ITIL focused
 Self Serve = Anarchy ?
 Want benefits of Cloud
 Continued single platform model
 Continued integration work
 Cross functional teams
 CIO dashboard capability
 vCloud Suite vCAC Automation
 Focus on Cloud Ops Functions
 Self Serve = Control
 Achieving the benefits of cloud
EMEA Insurance Company
TODAY
EMEA Insurance Company
TOMORROW

16. 16
VMware Advisory Services Customer Example
• 20% virtualized
• Now building Cloud Strategy
• Significant compliance issue
• 90% of changes non-standard
• Service Catalogue of ‘everything’
• Manual Processes everywhere
• High failure rate for deployment
• Infosec rules hampering agility
• 80% virtualized
• Now building Cloud Strategy
• Automated Compliance
• Move to a templated standard
change model
• Consolidated Service Catalogue
• Automation of key processes
• Increased ‘Right First Time’
• Infosec supported policy changes
Global Financial Services
TODAY
Global Financial Services
TOMORROW

17. 17
Why Tackle This – the Numbers Speak for Themselves !
1.2
1.5
2.2
3.1
1.00
1.50
2.00
2.50
3.00
3.50
4.00
5 or Less 6 to 10 11 to 15 16 or more
OverallROI(Avg1.62)
Number transformation Areas (Avg 6.2)
Source - VMware 2013 CloudOps Transformation Benchmark

18. 18
History Is Littered with Those Who Ignored a Trend….
Thanks - Simon Wardley

19. 19
Key Takeaways
 There is a huge space here for focus
• Multiple use cases, multiple transformation points
 Use case matters
• Required transformation highly variable, dependent on context
 IT Ops Transformation
• Necessary – cloud technology/tool value unlocked by Ops Transformation
• Valuable – more transformation highly correlated with greater ROI
• Heuristic - views change after transformation. We can learn from success.
 Transformation drives value in multiple areas – agility, cost, quality
 But “keeping the lights on is still job #1 in cloud era
 No single prescription – like with server consolidation
via virtualization

20. 20
Questions?

21. 21
Other VMware Activities Related to This Session
 HOL:
HOL-SDC-1301
Applied Cloud Operations
 Group Discussions:
OPT1004-GD
IT Financial Management for the Cloud with Khalid Hakim

22. THANK YOU

24. Operations Transformation –
Expanding the Value of Cloud Computing
Ed Hoppitt, VMware
Phil Richards, British Telecom Plc
OPT4689
#OPT4689