Buenos Aires 31 de Octubre de 2018

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1 Buenos Aires 31 de Octubre de 2018

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3 Moving Apps to the Most Effective Platform Reduce Costs and Optimize Your Portfolio Alejandro Ponicke Services Sales Executive. DELL

4 Moving Apps to the Most Effective Platform Assess Current state and future vision Target landing zones Build business case Optimize Retire Migrate Modernize Drive results Reduce cost Increase CSAT Improve Quality Transformation 4

5 Building Blocks for Understanding Understanding the portfolio requires looking at applications through a variety of lenses Inventory & objectively Prioritize Applications & Retire low value, under-utilized or redundant applications Auto-discover servers, map server and application dependencies Migrate to lower cost or more efficient operating platform Map applications to business functions and rationalize capabilities across the portfolio Assess suitability for PaaS and recommend transformation pathway Analyze and recommend best investment strategy for each application Modernize applications to enhance performance, maintainability or operation Recommend optimal cloud type and specific landing zone; assess ease of portability Develop TCO and ROI models; build financial business case 5

6 Application Portfolio Optimization Optimization impacts KPIs Impact on Performance Retire/Archive high risk, underutilized, or functionally redundant that introduce risk and excessive cost Cost Reduction Business Benefit Speed & Agility Reliability & Resiliency Risk Reduction Assess application portfolio, develop strategy, roadmap & business case Migrate to lower cost or more efficient operating platform Modernize applications to enhance performance, maintainability or operation Cost Reduction Cost Reduction Business Benefit Business Benefit Speed & Agility Speed & Agility Reliability & Resiliency Reliability & Resiliency Risk Reduction Risk Reduction 6

7 Retirement & Archive

8 Life & times of an application: Value, Cost, Risk The replacement use case illustrates the importance of sun setting applications Cost Value Risk Adoption Productive Pre- Replace Replaced 8 Replace

9 Application Retirement & Archive The low hanging fruit of enterprise transformation Under-utilized, low value applications Key Benefits Neutral ROI Significant ROI Functionally redundant application Ensure Data integrity, Availability, Accessibility Negative ROI Modest ROI Applications that are nearing end of life High risk applications Free up resources (People, I/S, $$$s) Reduce Risk of regulatory, legal, security, obsolescence 9

10 Retirement & Archive lessons learned Things to consider for a successful retirement program Incentivize Incentives for the business through profit sharing No archive silos An enterprise-wide archiving solution built into the application life cycle with Retire/Archive as a Service Know your portfolio Biggest lesson learned is to know your portfolio and prioritize the apps that have the most impact to your business. 1 1 Dave Anderson, Americas Delivery Lead App Retirement, Dell EMC Consulting 10

11 Retirement economics The economic power of retirement is strong, but the most compelling driver is risk mitigation After Retirement and Archive 96% Reduction in TCO $200,000 Transformation Cost: High vs. Low Transformation Cost (average) 23% of Current TCO* * Average transformation cost as a percentage of Current TCO $150,000 $100,000 $50,000 $- High Low XL Large Medium Small 11

12 Migration

13 Cloud workload assessment Cloud workload fit & financial plan Multicloud Modeling & Comparison Cloud Fit and Dependency Analysis Workload Capacity & Right Sizing 13

14 Application Migration Making multi-cloud a reality Important to the business Key Benefits Identify the best cloud targets for an organization s needs Neutral ROI Significant ROI Use technology supported by cloud Rapidly disposition applications to target landing zones Negative ROI Modest ROI Lower priority to Modernize than other applications Use design patterns to define pathways Build migration services Can be modernized after moving to cloud, low hanging fruits Execute rapidly, efficiently and tune 14

15 Application Migration lessons learned Things to consider for a successful migration program Know your targets If cost is #1, stay on premises w/cloud for bursting It s not the cloud, rather what you do with it Control the foreseeable future Adopt a multi-cloud operating model to maximize benefit across all target landing zones A well-thought-out multi-cloud roadmap is critical to marrying applications and services in a highly effective manner More than 85% of Enterprise IT Organizations Will Commit to Multicloud Architectures by 2018, Driving up the Rate and Pace of Change in IT Organizations IDC FutureScape: Worldwide Cloud 2017 Predictions 15

16 Application Migration economics With proper planning and execution, service levels should increase and costs decrease After Migration 30% Reduction in TCO Transformation Cost: High vs. Low $100,000 Transformation Cost (average) $50,000 6% of Current TCO $- High Low XL Large Medium Small 16

17 Modernization

18 Life & times of an application: revisited How can we extend the productive life of an application? Platform for Growth Cost Value Risk Adoption 18 Productive Replace

19 Lift n Shift Replatform Cloud Native Maturity Replatform with upgrade Modernize in Place Rewrite Application Modernization Strategically aligned applications warrant the greatest investment Neutral ROI Negative ROI Significant ROI Modest ROI Cloud Native Cloud Resilient Cloud Friendly Cloud Ready Key Benefits Operational efficiencies Reduced development cycles Increased reliability Greater business responsiveness 19

20 PaaS Decisioning This simplified view describes how applications are assigned to modernization disposition pathways & selected for pilot Pre-Screen Applications Initial Portfolio PaaS Candidates Criteria: Business Important or better In Production and supported No COTS Are planned to continue in the mid- to long-term Modernization Screen Pilot Suitability Screen Criteria: Criticality Impact of failure Availability Maintenance/support frequency Transformation Cost Application interdependencies Can run on VM Uses container hosted clustering Does not use OS specific libraries Does not use file system to store transaction data PaaS compatible language, database, OS and communication protocol* App is mission or business critical, requires high availability, and requires moderate to significant rework for PaaS App is business important and requires little to moderate rework for PaaS but warrants additional investment to take advantage of PaaS App is productivity oriented or business important and requires little to moderate rework for PaaS App is productivity oriented and requires no rework for PaaS Modernize in Place Rewrite the application through incremental creation of microservices in order to systematically replace the application Replatform with Upgrade Move application to PaaS and make code/configuration modifications to leverage PaaS PaaS efficiencies. In addition, increase 12 factor compliance Replatform Move application to PaaS and make code/configuration modifications to leverage PaaS efficiencies Lift n Shift Basic lift and shift of application to PaaS platform with minimal configuration modifications Result: Lift n Shift candidates for rapid PaaS Criteria: replatform Can run on VM Uses container hosted clustering Does not use OS specific libraries Does not use file system to store transaction data PaaS compatible language, database, OS and communication Internal protocol* Use - 20 App is technically not supported by PaaS and does not warrant a complete cloud native application rewrite App is technically not supported by PaaS and is of sufficient criticality to warrant a complete cloud native rewrite Reconsider An action of any sort (replatform or modernize) is not warranted based on it s associated cost and complexity Rewrite Application technology is not supported by PaaS and therefore must be re-written entirely

21 Application Modernization lessons learned Things to consider for a successful modernization program Drive ROI Start with lift n shift, then replatform (with upgrade), and finally modernize in place Results = Production Limit work in progress; get to production rapidly Let Results Radiate Compelling results will drive interest and uptake across the enterprise 21

22 Application Modernization economics Current versus future PaaS annual TCO 28% Savings Transformation Pathway Costs (Large App) Transformation costs may range from a fraction to 5X current TCO Modernize in Place Replatform Lift n Shift $- $500 $1,000 $1,500 Thousands 22

23 Summary

24 Application Portfolio Optimization Impact on Portfolio TCO Reduction (per App) Profile Applications Retire/Archive 4-20% 96% Reduce Risk Migrate 35-55% 30% Increase Agility, Reliability Modernize 25-45% 28% Enable DX 24

25 Sample Case Study: 2000 application portfolio TCO reduction 33% application TCO reduction, representing a $217M cost takeout from a 2000 application portfolio with an annual TCO of $650MM Retire 10% Apps $65M Incremental Savings Migrate 45% Apps $88M Incremental Savings Modernize 35% or 700 Apps $64M Incremental Savings = Portfolio TCO Reduction: 33% $217M Overall Transformation Savings 25

26 Transformation Through Application Portfolio Optimization TCO - Current TCO - Forecast Investment Savings

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