Best Practices in Adopting Cloud in Your IT Sourcing Environment Gartner IT Expo

Transcription

1 October 2014 Cloud bound Best Practices in Adopting Cloud in Your IT Sourcing Environment Gartner IT Expo David Simpson, VP IBM Strategic Outsourcing Cloud Services Steve Hodges, Global Director, IBM Cloud Advisory Services

2 Companies that t outsource infrastructure and applications are increasingly incorporating cloud into their IT services mix 2

3 Data, cloud and engagement technologies are driving enormous change in the IT Services market Systems of record Systems of engagement Integrate Optimize Innovate Why clients should act now To meet growing demands with a robust infrastructure and free up funding for innovation To rapidly differentiate against a growing number of competitors To realize new levels of value from seamlessly interconnected traditional and cloud systems Areas where clients need help Optimizing their existing IT infrastructure Innovating with new social, mobile, analytics and cloud technologies Integrating across their legacy IT and new in a hybrid environment 3

4 Those already traveling this path can offer important insights to their peers 4

5 A cloud infrastructure reduces time, costs and risks to enable rapid deployment of business transformation ti capabilities Traditional Process Detailed Scope Planning & Iteration Validate Need Obtain Capital Approval Order Hardware Conduct Space Planning Receive and Setup Hardware Configure Network Load and Test Hardware Requirements Install and Configure Custom Software solution Consequences Cloud Driven Process Guestimate Scope Provision resources from the cloud Utilize established patterns to instantiate a standard solution Benefits Over-ordering and excess costs Significant time and delays Increased risk and compliance issues Procurement processes bypassed No capital approval needed Avoids over-architecting Significant time saving Standardization Build in network connectivity, availability and scalability 5

6 Case study: Measured steps into the cloud, aiming for rapid transformation ecommerce Backup and recovery Create a roadmap to move aggressively into the cloud Evaluate other providers for future cloud solutions Manufacturer renegotiated two outsourcing contracts Address privacy and security concerns methodically Started with low Looked for ways Got the key Aligned with Positioned risk areas to leapfrog stakeholders the business cloud involved early strategically 6

7 Wherever you are in the journey, expect some twists in the road 7

8 Get started where you can then progress over time 8

9 As you navigate your journey How will you progress your cloud road map with your provider? And where do you jump in today? What will it take to get your security and compliance teams comfortable with cloud? How will you collaborate with your provider on innovative solutions? What is the best way to keep key stakeholders and business leaders informed and part of the cloud decision process? Who will be responsible for integrating your multi-vendor, hybrid IT environment? 9

10 IBM Market Development & Insights Access the Cloud Bound Study today at:

11 BACKUP additional case studies

12 Case study: Relying on experience to put critical capabilities on the cloud Pharmaceutical company split outsourcing contracts to get to the next level Analytics applications, HR, CRM Place newly developed applications on the cloud Move more workloads to the cloud Enlist the right resources from the provider Looked for an experienced Took an incremental approach Addressed security vendor, and asked for proof to moving workloads concerns head on 12

13 Case study: Leveraging contract flexibility to move critical systems to cloud Consumer goods company extended outsourcing to new geographies ~10% of their outsourced activity Aim for the low hanging fruit and gradually build Evaluate migration of business intelligence and data analysis Sought an experienced vendor with global reach Took a crawl before you walk approach Pursued flexible contracting ti Consulted with counterparts (in other orgs) to build confidence 13

14 In-depth interviews with companies in transition Double-blind qualitative study 10 in-depth interviews with IT outsourcing decision makers from large enterprises ($1B+) in the US, UK, and Canada Industries included pharma, insurance, manufacturing, healthcare, consumer goods, and engineering and business services The majority of respondents were CIOs or IT Directors Respondents had an IT outsourcing contract with an existing vendor within which cloud was being adopted or evaluated. They also were using a host of outsourcing vendors. Respondents were remarkably candid about what organizations should expect when making this kind of transition. They shared important advice, based on what s worked well and what hasn t. 14