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Cloud Services Brokerage : The future of the IT organization BSADCT-1013

Ben Del Vento

Sr. Solutions Architect Cisco Advanced Services

© 2013 Cisco and/or its affiliates. All rights reserved. BSADCT-1013 Cisco Public

Overview

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What does a highly mature IT organization look like?

What would IT organizations look like if they were not constantly fighting fires, and fighting to justify budget & head count ?

How can skilled IT professionals seeking to create more organizational and career value have an impactful seat at the table of business strategy?

If the promise of Cloud technologies were implemented fully and effectively what would be possible?


What is a Cloud Services Brokerage?

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“A role in which a company or other entity adds value to one or more cloud services on behalf of [1-n] consumers of those services” – Gartner Research

“Cloud Service Broker offers intermediation, monitoring, transformation/portability, governance, provisioning and integration services and negotiate relationships between various cloud providers and consumers” – National Institute of Standards and Technology (NIST)


3 Types of Cloud Services Brokers

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Aggregation broker

Integration broker

Customization broker

Delivers one or more services to consumers or other service providers

Making independent designed services work together as a combined outcome for a customer

Altering or adding to the capabilities of a service to improve its function


The impact of IT as the Internal CSB

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Who will be responsible for end-to-end delivery of cloud services? – Recent Gartner Poll : 80% of respondents identified the CIO or Designated

IT Manager

The Internal IT Organization will evolve into a cloud services integration broker

Realignment of CIO & CTO will tear down silos of these organizations


Why the IT organization must lead

The Internal IT Organization is the best choice to lead as cloud services broker Why it will happen

– The constant evolution of IT is apparent through constant value created Why it won’t happen

– The C Suite will look to external providers to fill in the needs for strategic initiatives

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The IT organization as a Service Broker

Network Operations Services Device

Reactive

Predictive

Breadth of Services

Dep

th o

f Ser

vice

s

Greater predictive capabilities drive outcomes

Proactive

Preemptive


Agenda

Create business value brokering Cloud Services

The Build vs. Buy (or Subscribe) IT decision

Beyond trusted advisor: Becoming a Strategic Differentiator

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A predictive and preemptive IT organization can create business value by enabling business outcomes through the effective implementation of technology

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How business consumes Technology

Nolan & McFarlan’s Modes of IT Consumption

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Factory Strategic

Support Turnaround

IT Impact on Core Strategy

IT Impact on Core

Operations

Improve production process performance

Improve end user performance Identify and develop new ventures

Transform business or industry

Source: IT Strategic Grid. Harvard Business School, Warren McFarlan, L.J McKenney


Create business value brokering Cloud Services An IT organization can maximize value by enabling business outcomes with technology

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Factory Strategic

Support Turnaround

Improve production process performance

Improve end user performance Identify and develop new ventures

Transform business or industry



Once the business requirements define the technology capability needed to drive an outcome – Who makes the decision on whether to “make or buy” the technology solution? The Internal CSB is a necessary role that governs these technology

consumption decisions on behalf of the entire organization.

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Enterprise Customers

CSB Platform

Private Cloud

Legacy Systems

Salesforce

Workday

Amazon

The Build vs. Buy IT decision



Making an informed decision on where to source Cloud Services

– Financial management - chargeback capability – Projected demand and current consumption

– Risk analysis on the data sensitivity

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The Build vs. Buy IT decision Financial Management

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Pricing Model

Analyze Costs

Billable Items Atomic Units

Chargeback Tool

Chargeback Solution

Chargeback Methodology



Capacity & Demand Management Expected growth Pre-allocation for expected changes Versatility in workload placement Accuracy in workload sizing Impact from operational policies

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With an understanding of – Business objectives – Current IT capabilities – Available budget – Risk & sensitivity – Time to market – Application lifecycle

An informed Build or Buy decision is now possible

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Factory Strategic

Support Turnaround

(Process Performance)

(End User productivity) (New Ventures)

(Competitive Advantage)

Core Strategy

Core Operations

Impact on



The Build vs. Buy IT decision provides an informed, meaningful and effective response to a business challenge.

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Aggregation

Integration

Customization

Internal CSB

Executive Stakeholders

Defines business requirement

CSB Build or Buy decision

Solution sourced internally and or externally

Becoming a Strategic Differentiator



How does IT management gain the trust of executive leadership to broker and facilitate business outcomes?

Transition from: Support to

– Turnaround – Strategic – Factory

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Factory Strategic

Support Turnaround




Core Strategy

Core Operations

Impact on



Center(s) of Excellence Enabling : IT Infrastructure Cloud Operations DevOps

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Service Owner(s) Service Portfolio Manager Service Level Manager Service Architect(s) Service Analyst(s) Service Developer(s)

IT Security

Executive Sponsor

IT Governance Other COE

Operations COE core Infrastructure

Architect

Service Desk App & DB Development



Automate existing, manual IT Service Management. Service Desk Event & Problem Management Discovery and Service Dependency mapping Release and Deployment Management Configuration Management

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Advanced reporting and dashboards Internal business strategy

– Critical Success Factors (CSF) – Key Performance Indicators (KPI) Increase visibility on what matters

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Manage and monitor services from external partners and providers IT Service Management processes

– Incident and Service Desk – Problem Management – Align SLA – Reporting on metrics – Configuration & Change management

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Strategic differentiation happens when a single organization consistently delivers IT solutions to the entire business

Factory Strategic

Support Turnaround




Core Strategy

Core Operations

Impact on

Internal Cloud Service Broker


Summary

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A Cloud service broker adds value to one or more IT Services on behalf of customers The internal IT organization must take on leadership as the Internal Cloud

Service Broker IT organizations create business value brokering internal or external cloud

services Key Tools enable the the Build vs. Buy IT decision Moving beyond the trusted advisor, the IT organization can become a

Strategic Differentiator as a Cloud Service broker

An IT Organization creates the most business value when it brokers business requirements into outcomes through Cloud and IT services


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