Cloud in a Box: Scaling to Meet Today s Business Workloads for Tomorrow s Success

Transcription

1 Cloud in a Box: Scaling to Meet Today s Business Workloads for Tomorrow s Success An IDC InfoBrief June 2018 Sponsored by:

2 2 EXECUTIVE SUMMARY gainst the backdrop of rising infrastructure complexities and costs, enterprises are struggling to get the desired benefits from their cloud investments which are essentially simplifying IT, gaining business agility, and ensuring security to meet compliance requirements. This IDC InfoBrief looks at the business drivers and concerns, the state of cloud investments today, and why it makes sense to relook at their cloud strategy. We throw the spotlight on cloud in a box : Reasons for the choice of cloud deployment Concept of cloud in a box Concerns around cloud deployment How cloud in a box addresses the needs and concerns of organizations in banking, financial services and insurance (BFSI), manufacturing and healthcare Are you ready to bring your business out of the box and into the cloud? Trend toward cloud native technology 65 % 20 % By 2021, over 65% of enterprises will use multiple cloud services and platforms a transition supported by investments to manage resources across platforms with more than one-third of these organizations having established mechanisms to operate their multicloud environments. By 2021, 20% of enterprises will reorganize to separate support for SaaS solutions from development and delivery of custom applications, which will primarily use cloud-native technology. Source: IDC FutureScape: Worldwide Cloud 2018 Predictions APeJ Implications

3 The State of Cloud Asia-Pacific is Primed for Cloud Over the next 24 months, enterprises will see a shift in IT operations spend from legacy on-premises to a cloud infrastructure and platform, with increasing use of cloud native technology. On-demand hosted private cloud (ODHPC) 3 Legacy On-premises 26.5 % 25.7 % 58.5 % Hosted Private Cloud Enterprise Private Cloud 21.4 % of enterprises IT budget is on cloud Public Cloud 10.6 % Traditional Outsource 15.9 % Dedicated hosted private cloud (DHPC) Enterprise private cloud (EPC) Software as a service (SaaS) Platform as as service (PaaS) Infrastructure as a service (IaaS) Private Cloud Public Cloud 0% 20% 40% 60% 80% 100% Use Plan Evaluate No Interest N= 2,000 Source: IDC Asia-Pacific (excluding Japan) Cloudview Survey 2018

4 The State of Cloud Share of Spending Continues to Shift to Cloud IT 4 5x At least 55% of enterprises IT spend is cloud-based, with Australia, New Zealand, and India spending the most on cloud. Enterprises IT spend on private cloud is about 5 times more than public cloud across the region. Hosted Private Cloud 29 % 61 % of enterprises IT budget is on cloud Enterprise Private Cloud 22 % Public Cloud 10 % Legacy On-premises 24 % Traditional Outsource 15 % Australia and New Zealand Hosted Private Cloud 27 % 58 % of enterprises IT budget is on cloud Enterprise Private Cloud 21 % Public Cloud 10 % ASEAN Legacy On-premises 25 % Traditional Outsource 17 % Over the next 24 months, enterprises in ASEAN and Korea will see the most significant shift in IT spend from legacy on-premises to a cloud infrastructure and platform, with the increased pace of IT modernization. Hosted Private Cloud 27 % 55 % Enterprise Private Cloud 19 % of enterprises IT budget is on cloud Public Cloud 10 % Legacy On-premises 29 % Traditional Outsource 16 % Hosted Private Cloud 27 % 62 % of enterprises IT budget is on cloud Enterprise Private Cloud 23 % Public Cloud Legacy On-premises 12 % 23 % Traditional Outsource 15 % KOREA INDIA N= 700 ASEAN, 300 Australia and New Zealand; 150 Korea, 250 India Source: IDC Asia-Pacific (excluding Japan) Cloudview Survey 2018

5 The State of Cloud On-Premises Cloud Infrastructure Will Grow 5 SaaS is driving public cloud adoption across the Asia-Pacific, with most enterprises opting for private cloud as their preferred cloud IT infrastructure. ODHPC DHPC EPC Private Cloud ODHPC DHPC EPC Private Cloud SaaS SaaS Enterprise private cloud (EPC) is the preferred cloud deployment model, with ASEAN and ANZ showing the highest adoption. PaaS Public Cloud IaaS 0% 20% 40% 60% 80% 100% Australia and New Zealand PaaS IaaS 0% 20% 40% 60% ASEAN 80% 100% Public Cloud Increasing data residency regulatory requirements will drive more private cloud deployment in the region. ODHPC DHPC ODHPC DHPC EPC Private Cloud EPC Private Cloud Adoption of on-premises cloud infrastructure and platform will grow with enterprises adopting a hybrid IT model, moving applications between public cloud and their own internal data centers. SaaS PaaS IaaS 0% 20% 40% 60% KOREA 80% 100% Public Cloud SaaS PaaS IaaS 0% 20% 40% 60% INDIA 80% 100% Public Cloud Use Plan Evaluate No Interest N= 700 ASEAN, 300 Australia and New Zealand; 150 Korea, 250 India Source: IDC Asia-Pacific (excluding Japan) Cloudview Survey 2018

6 Adoption Drivers Speed and Agility Among Top Triggering Factors Business demanding more agility and/or need for speed from IT is the most important triggering factor for considering cloud. This reflects a more proactive approach to cloud in contrast to the past when cloud was largely considered during a hardware refresh for its lower setup cost and ease of access to new functionality. Most organizations in the region are adopting a cloud-first strategy as compared to cloud also two years ago. Cloud infrastructure is the preferred option when it comes to IT modernization for upgrade, expansion and replacement of existing IT infrastructure. On-demand nature of cloud services ensures organizations to scale and deploy at speed without additional investment. By leveraging the appropriate cloud solutions, organizations can embrace changes through the consolidation of both on and off-premises cloud solutions in a unified model. Which of the following best describes your organization s main concerns about cloud? Business demanding more agility and/or speed from IT Datacenter requiring upgrade, expansion, or replacement Modernization and re-platforming Need functionality or services only found in cloud offerings Software applications coming to the end of their life Hardware (e.g., servers) coming to the end of its life IT CAPEX budgets being constrained or reduced IT OPEX budgets being constrained or reduced 0% 10% 20% 30% 33 % 30.2 % 29.3 % 32.4 % 40% 39.9 % 48 % 47.5 % 50% 60% % N= 2,000 Source: IDC Asia-Pacific (excluding Japan) Cloudview Survey 2018

7 Private Versus Public Cloud Adoption Private is Preferred over Public Cloud Private cloud is the preferred cloud IT infrastructure in the Asia-Pacific, as enterprises look for better TCO visibility and manageability. There is no one size fits all approach; there are different entry points, depending on enterprises business needs and aspirations. Most enterprises begin their journey with public cloud services before progressing to private cloud and eventually managing a hybrid cloud environment. 7 EVALUATING DEPLOYING EMBRACING 4 % Private Cloud Public Cloud Generally educating ourselves NO CLOUD INTENT 7 % 10 % Generally educating ourselves 6 % Evaluating the cloud approach for a Evaluating the cloud approach for a 3 % 4 specific workload or service % specific workload or service Have firm plans to implement cloud 7 % service(s) within the next 12 months CLOUD INTENT Have firm plans to implement cloud 9 % service(s) within the next 12 months Currently using cloud service(s) but 17 % 93 % 90 % only for one or two small applications Currently using cloud service(s) but only for 19 % one or two small applications 68 % Currently using cloud service(s) for more than one or two small applications 62 % Currently using cloud service(s) for more than one or two small applications EVALUATING DEPLOYING EMBRACING N= 2,000 Source: IDC Asia-Pacific (excluding Japan) Cloudview Survey 2018

8 Adoption Drivers Reasons for Private and Public Cloud Adoption Adoption is towards hybrid cloud with on-premises private cloud Infrastructure PRIVATE CLOUD ADOPTION 64 % Embracing enterprise private cloud 55 % Embracing hosted private cloud PUBLIC CLOUD ADOPTION 40 % Embracing on-demand hosted private cloud Public for agility, private for security 46 % 55 % Public cloud: Improve business agility Private cloud: Improve IT security Organisations look at cloud to simplify and standardize their IT infrastructure and applications platforms. Business demanding more agility and/or need for speed from IT is the most important factor leading organizations to consider cloud services Security and IT governance is considered the major inhibitor for cloud adoption irrespective of delivery model. Deep technological expertise was rated the most important attribute when considering a potential cloud service providers % Embracing SaaS SaaS is a key driver 50 % Embracing PaaS 41 % Embracing IaaS Lack of internal staff skills and failure to optimize mix of on-premises and cloud models by workload are the key reasons for organizations failing to meet the business objectives of cloud adoption Majority of organizations said they had a cloudfirst strategy both for procuring net-new IT services and replacing existing on-premises IT services. N= 2,000 Source: IDC Asia-Pacific (excluding Japan) Cloudview Survey 2018

9 9 Adoption Barriers Security is the Biggest Concern Which of the following best describes your organization s main concerns about cloud? Security and IT governance is still the major inhibitor for cloud adoption irrespective of delivery model. However, other concerns like vendor lock-in and costs have risen in recent years. Public cloud faces concerns about its availability and reliability. Security concerns IT governance issues, including challenges related to defining standard services and SLAs Downtime causing business interruptions Private Public Complicated and rising costs of public cloud has make enterprise private cloud the preferred option in recent years. Vendor and price lock-in Difficulty centrally managing IT systems, IoT services and integration cloud services Ability to integrate and centrally manage both on- and off-premises cloud solutions are key for organizations in the region. Will cost too much Regulatory and complicance issues Organizations are not too concerned about the reduced customization opportunities from cloud solutions, thus the relatively high adoption of SaaS solutions. Insufficient buy-in from internal stakeholders Reduced customization opportunities Inadequate IT skills to implement and/or manage Cloud services Inadequate cloud IT skills in the region is less of a concern. 0% 10% 20% 30% 40% 50% 60% N= 2,000 Source: IDC Asia-Pacific (excluding Japan) Cloudview Survey 2018

10 10 Key Expected Benefits Private for Security, Public for Agility With regard to security, most organizations believe that private cloud architectures are inherently more secure than public cloud. Regardless of deployment model, cloud is considered a key technology to improve business agility. Organizations look at cloud to simplify and standardize their IT infrastructure and applications platforms. Public cloud solutions are considered to help reduce the total size of IT budget, but it is not the key priority for cloud adoption. Top 5 benefits organizations expect to achieve from their cloud strategy Improved IT security Improve business agility Simplify and standardize IT infrastructure and applications platforms Improve IT staff productivity and/or reduce size of staff Give business units (e.g., sales and marketing) more direct control over IT sourcing Improve business agility Simplify and standardize IT infrastructure and applications platforms Improved IT security Give business units (e.g., sales and marketing) more direct control over IT sourcing Private Public Get access to the newest functionality faster Organizations are looking to drive business agility through fast provisioning. 0% 10% 20% 30% 40% 50% 60% N= 1,701 Source: IDC Asia-Pacific (excluding Japan) Cloudview Survey 2018

11 11 Making Cloud Work for You Cloud Ecosystem for New Consumption Models he rise of cloud services has significantly disrupted the IT infrastructure market and introduced new dynamics to customers IT expectations. Consumption-based procurement will eclipse traditional procurement by 2021, according to IDC FutureScape: Worldwide Datacenter 2018 Predictions APeJ Implications. Enterprise IT-owned hardware/infrastructure software Infrastructure service (cloud service provider owns hardware/infrastructure software) Enterprise line-of-business owners are learning how to communicate and work with IT, and as a team, they are creating solutions around what needs to be accomplished to make the business successful. Optimizing and streamlining a workload or a business process and then being able to support and manage the workflow efficiently and cost effectively from creation to consumption is the Holy Grail for enterprises. Thus it is critical that enterprises look at these new consumption-based models: Enterprise private cloud Enterprise datacenter Colocation datacenter Dedicated/Private infrastructure service (Compute, storage, network) Local cloud (Customer site) Hosted cloud (Cloud service provider datacenter) Shared/Public infrastructure service (Compute, storage, network) IaaS (Cloud service provider datacenter) The cloud deployment models are defined by the custodianship of the cloud-based IT resources. If the resources are owned by internal enterprise IT, then it s considered enterprise private cloud - either on-premises or off-premises (collocated). If the resources are owned by the service providers and they are dedicated resources for one enterprise, then it s considered private cloud either on-premises (local private cloud) or off-premises (hosted private cloud). For shared resources, then it s considered as public cloud. Source: IDC, 2018

12 Making Cloud Work for You Choice of Deployment Boils Down to the Workload Choice of deployment is underpinned by the purpose and nature of workload that is running in the cloud 12 Steady-State Workloads Elastic Workloads No more migrations and updates As these workloads do not change much overtime, the purpose of the cloud deployment is to align with the needs of IT organizations for incorporation of capabilities that optimize/update critical business systems of record to support digital transformation. Key considerations: to meet specific requirements for integrity (a combination of high availability, security, and trust), predictable performance and data sovereignty (regional or country-level). Edge Workloads Taking cloud to the edge As these workloads require low latency and insusceptibility to network disruptions or strict regulatory requirements for local access to records by legal entities, the purpose of the cloud deployment is to build a highly standardized cloud platform designed for delivering a set of predefined cloud-based applications. Applications are disposable, but data is forever As these workloads are highly variable and intermittent, typically associated with mobile and analytic service, the purpose of the cloud deployment is to build around customer experience and continuously integrate the short-lived and highly variable systems of engagement and analytic insights. Key considerations: to align costs to actual workload behavior while minimizing the lost-opportunity costs associated with not reacting to rapid fluctuations in use/demand. Key considerations: standardization of hardware and software, low touch, security of the local wireless network and ease of management by the IT administrators and developers.

13 Choosing the Right Cloud Building an Enterprise Cloud Platform A robust enterprise cloud platform requires the organization to deploy a mix of on- and off-premises private cloud and public cloud, with orchestration between them. This will provide the organization with ability to avoid vendor lock-in, find the optimal cloud services for a particular business or technical need, and increase redundancy. It will also provide a robust service delivery platform for the 3 types of workloads in consideration of cost, scalability, performance, control and security. 13 Enterprise IT-owned hardware/ Infrastructure Typically moves between software on- and off-premises and the enterprise s preferred cost ownership model for the hardware Enterprise private cloud Enterprise datacenter Colocation datacenter Edge Workloads Infrastructure service (cloud service provider owns hardware/infrastructure software) Steady-State Workloads Dedicated/Private infrastructure service (Compute, storage, network) Local cloud (Customer site) Typically moves Hosted between cloud enterprise owned (Cloud and service SP owned provider hardware but always on-premises datacenter) Shared/Public infrastructure service (Compute, storage, network) Elastic IaaS Workloads (Cloud service provider datacenter) Typically moves between different public cloud service providers dependent of geographical coverage Reasons for Choosing Enterprise Private Cloud Reasons for Choosing Hosted Private Cloud Network latency Uncompromising security and trust Governance and control Peak and consistent performance Data sovereignty Reliability and service level agreements (SLAs) On-PREMISES CLOUD Reasons for Choosing Public Cloud Low upfront cost and risk with pay-as-you-go pricing (near zero cost of management) Fast scaling of resources to match demand Shorter time to value through fast provisioning On-demand self-service for efficiency Fast growing ecosystem of value-added services Global delivery for geographic growth and collaboration

14 14 Do you need Cloud in a Box? On-Premises Cloud On-premises cloud will be the service delivery platform to support the requirement of edge and steady-state workloads, while keeping the elastic workloads on public cloud and some steady-state workloads on off-premises private cloud infrastructure. D O YO U N E E D? Cloud-like abilities like IT automation, fast provisioning and scaling of resources on your on-premises IT infrastructure environment Single point of contact for IT systems implemented on-premises, easier and more efficient method to resolve issues with vendor who has intimate knowledge of the systems they put in place. Compliance with business and government regulatory requirement on the residency of data, prohibition of data leaving a country or a datacenter. Capex for better visibility and manageability on the total cost of ownership with the ability to reduced IT costs through consolidation. Quick deployment of cloud services with low latency for reliability and high availability. Convergence of compute, storage, network, virtualization and management for portability and easy access of business applications and data. CLOUD IN A BOX

15 Making Cloud Work for You What Cloud in a Box Delivers Always available for consistent cloud services 15 Consistent development with standard API Compliance with business policies Ease and speed of deployment Local application performance Elastic scalability of resources High availability and manageability Engineered integrated turnkey solution

16 Making Cloud Work for You Concept of Cloud in a Box 16 CLOUD IN A BOX Cloud Resources PUBLIC CLOUD SERVICES Virtual Machines Storage & Compute Virtual Networks Applications Service Delivery & Management Developer & IT Pro Experiences PaaS Platform as a Service IaaS Infrastructure as a Service SaaS Software as a Service Unified Application Model Extensible Service Framework Additional Services Core Services Additional Services Foundational Services Cloud Infrastructure Other Third-Party Services

17 17 Industry Use Case Spotlight: Bank in a Box Establishing a new bank branch has never been easier. With bank in a box (BIB), banking technology is reduced to a predictable operational cost, and banks are able to refine and manage their profit models with ease. This solution is especially useful for banks to quickly set up branches in remote locations like the rural areas while maintaining the required governance and controls from the main central bank. WHAT HOW Secured data migration. For banks digitally transforming their core banking services, it is important that their data migration is fast and secured to prevent security breaches, and to reduce migration downtime. BIB offers a secured and fast way to migrate data across bank branches. Data can be directly replicated between the boxes quickly then lift and drop for deployment. Connectivity and integrity of existing cloud services remain intact. Data residency and security. Regulatory requirements mandate banks to maintain a high level of data security, especially on customer data which is required to be retained in the country of origin. BIB is deployed on-premises as virtualized private cloud environment behind the firewall with automated self-provisioning for authorized users to ensure easy identification and quick response to security threats. 360-degree customer view. A complete view of the banking customers by integrating customer information across multiple channels, systems, devices and products. BIB is cloud-enabled which makes integration of data across cloud applications and services easy. Ease of deployment and management. Multi-country deployment and expansion of new branches within country require interoperability of applications and information across markets and national boundaries. BIB offers increased automation engineered in a box for straight through processing. This drives consolidated systems and processes to enable standard business operating model across all branches. Faster time to market. Fintech is driving digital disruption and competition in the banking industry. Banks need to sustain aggressive growth and reduce cost through flexibility and speed to launch new products and maintain a global approach to customers. BIB enables standardization of products and processes across branches. Through pre-configured product templates, banks get new products to market faster and reduced cost.

18 Industry Use Case Bank in a Box All technology required from core banking software to payment solutions, card management systems can be installed onto BIB during deployment or have it delivered via public cloud or third-party service providers after deployment. This delivery model allows new banks and core transformation projects to be implemented with consummate ease, eradicating the need for large up-front capital investments. 18 Investment Banking PUBLIC CLOUD OR THIRD-PARTY SERVICE Retail Banking Delivery Channels Risk Management Collections Bank in a Box Fraud Detection CRM PaaS Platform as a Service IaaS Infrastructure as a Service Payments Corporate Banking

19 19 Industry Use Case Spotlight: Factory in a Box A scalable, asset-centric data foundation is critical to the success of industrial applications. With factory in a box (FIB), industrial machine data and manufacturing databases of products and parts can be integrated with manufacturing applications on- and off-premises to provide a single source of information repository to efficiency manage the factory. WHAT HOW Digital repository for manufacturing. Industrial IoT collects equipment data for predictive analytics to optimize the performance of manufacturing assets, minimizing machine breakdown and reducing operational risk. FIB acts as the central repository for machine data and manufacturing databases with the ability to work with cloud-based analytics solutions to provide equipment diagnostic and prognostic capabilities for asset management. Operational performance management. Integration of manufacturing data across plants, sites and product portfolio to optimize the throughput and productivity. Cloud-based digital repository can be shared across multiple factories for integrated operation management of ERP systems installed on the FIB. Shop floor to top floor integration. Integration of business and manufacturing system through a single source of information repository provides a close loop from sales orders to manufacturing orders to delivery confirmations for improved productivity. FIB is cloud-enabled which makes integration of manufacturing applications like ERP and MES across factories easy and also allows integration with other cloudbased applications like SCM and CRM. Connected manufacturing. Industrial IoT with machine learning and big data analytics can seamlessly connect equipment, people, operations, and the supply chain to provide real-time manufacturing analytics FIB can utilize cloud-based machine learning and big data analytics on all manufacturing data collected which enables manufacturers to drive automated workflow across all manufacturing resources.

20 Industry Use Case Factory in a Box All technology required for control and management of a factory, which include enterprise resource planning (ERP), manufacturing execution systems (MES), industrial IoT, warehouse management systems (WMS), and supply chain management (SCM), can be installed onto FIB during deployment or have it delivered via public cloud or third-party service providers after deployment. Coupled with machine learning and big data analytics modules in the cloud, such a delivery model can provide real-time prognostic capabilities and actionable insights for factory of the future. 20 Information Management PUBLIC CLOUD OR THIRD-PARTY SERVICE PROVIDERS ERP ERP MES MES Factory in a Box Predictive Analytics CRM SCM PaaS Platform as a Service IaaS Infrastructure as a Service Asset Management WMS WMS IoT Industrial IoT

21 21 Industry Use Case Spotlight: Hospital in a Box A scalable, asset-centric data foundation is critical to the success of industrial applications. With hospital in a box (HIB), patient electronic health records (ehr) can be securely stored and retrieved by authorized doctors with permission from the patient, driving significant cost savings and remove ecosystem waste in patient care. This will enable hospitals to quickly set up satellite healthcare facilities in remote rural areas where the healthcare support and reach are typically poor. This will also improve the quality of healthcare from diagnosis to delivery of treatment to the patient. WHAT HOW More focused patient care. ehr is used to optimize the intake process, ensuring the healthcare provider is not overwhelmed by data entry work. Improved visibility into patient activity. Healthcare providers connected to the network can access patient data to see all referrals, orders and results from previous providers, providing collaborative patient care. HIB acts as the digital repository for ehr with the ability to work with on-premises and cloud-based healthcare administration and management solutions. Healthcare providers can streamline administrative work on the same platform, enabling them to focus on patient care. Optimize efficiency and profit. Cloud-based system ensure all users on the same network see the same continuous updated information at the same time, thus driving more consistent revenue flow. HIB can consolidate data from different processes for real-time updates, ensuring patient information is constantly up-to-date and maintaining data integrity. Better results with less work. Incoming order results can be automatically populated in the patient chart for authorized access and secured autonomous alert on mobile. This reduces work for manual exchange of information via phone, fax or paper. HIB can utilize cloud-based analytics on all EHR collected and healthcare information management systems. With automated workflow implemented on the platform, hospital and patient communication can be automated to improved quality of services.

22 Industry Use Case Hospital in a Box All technology required for patient care and support, which include patient administration, care coordination, healthcare resource and facility management, can be installed onto HIB during deployment or have it delivered via public cloud or third-party service providers after deployment. With HIB cloud-enabled, it provides a platform to connect healthcare providers for integrated patient care. 22 Operating Theatre Management PUBLIC CLOUD OR THIRD-PARTY SERVICE PROVIDERS Electronic Health Records Patient care Analytics Lab Information Management Patient Administration Hospital in a Box Care Coordination PaaS Platform as a Service IaaS Infrastructure as a Service Revenue Cycle Management Healthcare Information Management System

23 Essential Guidance While many organizations have acknowledged the importance of digitally transforming their businesses and processes to deliver speed and agility, most are just starting their cloud journey. No matter what your cloud maturity level is, you should start now. Here is a check list of self-discovery questions and focus areas that every organization needs to go through for successful cloud deployment: Can your current IT infrastructure environment run at scale? Seek automation and orchestration capabilities to gain scale and efficiency Are you facing complexity when using or integrating multiple tools and applications? Explore modern and software-defined architectures, containers and OpenStack technology Is reliability an issue when trying to accelerate your cloud migration and implementation? Consider pre-integrated options vs building the infrastructure from scratch for speed to deploy and pre-tested reliability. Are you looking to gain efficiencies through better automation and orchestration? Review your in-house talent and consult partners that can help to identify and fill the gaps if any How much visibility do you have into your IT resource utilization and cost? Simplify your IT infrastructure through standardization of software platforms and utilize cloud-based solutions

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